Topper Sports, Incorporated produces high-quality sports equipment. The company's Racket Division manufactures three tennis rackets-the Standard, the Deluxe, and the Pro-that are widely used in amateur play. Selected information on the rackets is given below Standard $ 70.00 Selling price per racket Variable expenses per racket: Production Selling (5% of selling price) Deluxe $106.00 Pro $ 160.00 $ 42,00 $ 3.50 $ 53.00 $ 5.30 $ 64.00 $ 0.00 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Fixed production costs Advertising expense Administrative salaries Total Per Month $ 158,000 138,000 38.000 $384.000 Sales, in units, over the past two months have been as follows: Standard Deluxe Pro Total April 2,000 1,000 5,000 3,000 May 0.000 1,000 3,000 12,000 Required: 1a Prepare contribution format Income statements for April 1.b. Prepare contibution format income statements for May. 3 Compute the Racket Division's break even point in dollar sales for April 4 Will the break-even point would be higher or lower with May's sales mix than with April's sales mix? 5. Assume that sales of the Standard racket increase by $23.800. What would be the effect on net operating income? What would be the effectif Pro racket sales increased by $21,800? Do not prepare income statements, use the incremental analysis approach in determining your answer. Topper Sports, Incorporated Income Statement for April Deluxe Standard Pro Total Amount % Amount % Amount Amount Sales Variable expenses Total variable expenses O 0 0 0 0 0 05 0 0 00 0.0 5 0 0 $ 0 0$ 0 Foed expenses Total fed expenses 0 $ 0 Topper Sports, Incorporated Income Statement for May Deluxe % Amount % Standard Pro Total Amount Amount % Amount Variable expenses Total variable expenses 0 0 0 0 0 0 00 $ 0 0 $ 0 Os 0 0$ 0 0.0 Forced expenses Total food expenses 0 0 1-a. Prepare contribution format income statements for April. 1.6. Prepare contribution format income statements for May. 3. Compute the Racket Division's break-even point in dollar sales for April. 4. Will the break-even point would be higher or lower with May's sales mix than with April's sales mix? 5. Assume that sales of the Standard racket increase by $23,800. What would be the effect on net operating income? What the effect if Pro racket sales increased by $23.800? Do not prepare income statements; use the incremental analysis approa determining your answer. Complete this question by ertering your answers in the tabs below. Reg 1A Req 18 Req3 Req4 Reg 5 Compute the Racket Division's break even point in dollar sales for April. (Round intermediate percentage calculations to 1 decimal place and final answer to the nearest whole dollar) Bronkoven point in dollar sales Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 3 Reg 4 Reg 5 Whether the break-even point would be higher or lower with May's sales mix than with April's sales mix? Higher Lower ( Req3 Reg 5 > with Aprils sales mix? 5. Assume that sales of the Standard racket increase by $23,800. What would be the effect on net operating income? What would be the effect: If Pro racket sales increased by $23,800? Do not prepare Income statements, use the incremental analysis approach in determining your answer Complete this question by entering your answers in the tabs below. Reg 1 Reg 15 Req3 Reg 4 Reg 5 Assume that sales of the Standard racket increase by $23,806. What would be the effect on net operating income? What would be the effectif Pro racket sales increased by $23,800? Do not prepare Income statements; use the incremental analysis approach in determining your answer. Standard Effect on Net operating income Pro Reg
